Financial planner and mother Canna Campbell saved $32,000 in twelve months by using her unique strategy of bundling – saving and earning extra money in small, achievable parcels of $1000. Now she wants to empower you to get the same results...
We asked Canna for her top financial tips for mothers and also found about more about her new budgeting app Sugar Budget (download it here). To read her new book, The $1000 Project, click on the link below.
Image: Julie Adams | Go to www.sugarmamma.tv
What inspired you to create your new Sugar Mamma budgeting app - Sugar Budget - and talk us through it…
As part of my job, I do a lot of financial coaching, particularly around credit card debt. I help people create their own budgets and then design simple easy to follow banking instructions to help them manage their immediate cash flow needs but also make headwind in getting back on top of the mounting debt and actually pay it off for good. My clients become addicted to simplicity and how quickly it creates that shift towards a more empowering and healthier financial future.
So I decided to turn it into a budgeting app (Sugar Budget) so that everyone can access it and take control of their own financial future and achieve exciting financial goals for themselves. When you have control over your personal finances and can see yourself financially progressing, it is incredibly empowering and a lot of stress comes off our shoulders, allowing us to enjoy our time and that we chose to spend our money on.
How do you personally approach budgeting? Do you keep a record of everything you purchase?
I give myself boundaries for each necessary expense. For example, I have an amount to spend during the weekday on certain expenses (coffees, dry cleaning, lunch money etc), then a set amount for the weekend (activities, socialising etc), and a set amount to spend on groceries for the week. I try and create as much consistency as possible. Keeping your budget simple and easy is the key to making it work for the long run. Also, having a boundary keeps me accountable and responsible and if I have some money left over from budgeting wisely. I can buy myself something nice. Or put it aside for a time where I slightly go over my budget.
How do you prepare for periods such as Christmas when you know you'll be spending more?
I have a Life account which I regularly add money to, to proactively prepare for these annual expenses. It is part of my banking instructions within the Sugar Budget App, that not only prepares for Christmas time but car rego, council rates etc.
That way the cash is ready for when I need it and I never need to start the new year with credit card debt or get caught out by surprise. I also include a buffer amount for unexpected expenses such as parking tickets, unexpected dental and medical bills etc. That way I don’t get too stressed when these things happen.
This is one of the key benefits behind the Sugar Budget app as it factors in these annual expenses which catch us by surprise or creep up on us during the year.
Best financial advice you've ever been given?
Understanding the benefits of long-term compounding interest. Once you understand this, financial motivation and commitment immediately kicks in.
How can mothers be smarter with their spending?
I actually think mothers are great at managing spending, they just don’t realise it. Here are 5 simple things every mother can quickly do which will create an immediate shift towards a better financial future…
1. Have a family budget – go through it with your partner so that you are both on the same page and understand what the cost of living really is. Most males have no idea as to how much their family needs to survive financially. My Sugar Budget App actually lets you share the budget so that you are always able to communicate any changes.
2. Set financial goals – have saving goals, have debt reduction goals, have retirement goals – set them together.
3. Pay down non-deductible debt – this is debt that is not tax deductible…such as credit card debt, personal loans and yes, even the mortgage on your home. Even increasing your repayments by as little as $100 per month makes a big difference.
4. Find your super – find out where it is, consolidate into the one superannuation account, make sure that it is invested properly for your long-term retirement goals. And when the timing is right, get professional financial advice.
5. Educate yourself – learn about getting better with your money, there are so many great resources out there which are easy to understand and work out what is the best financial strategy yourself. I publish one financial video per week (every Monday) on my YouTube channel, which is bite-size, easy to follow steps for you to get back in the driving seat.
What keeps you motivated?
Progress. No matter what I am working on, whether it be a financial goal, health goal or even emotional control goals, that feeling of making headwind, even if it is very small, is a sign that I am on the right path. And that feeling invigorates me and my energy levels soar.
What are your time management tips?
Wake up early.
Learn how to concentrate.
Always plan and prepare the night before.
Exercise – this gives me the energy and clarity of mind to keep going.